International Cost Engineering Council

Level 3, 70 Pitt Street, Sydney NSW 2000 Australia

Tel: + 61 2 8234 4000secretariat@icoste.org

www.icoste.org

ICEC Roundup

December 2016

Issue 2, Vol. 7, 2016

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Contents

ICEC Executive 2016 - 2018 4

Message from the ICEC Chair 5

10th ICEC World Congress - IBEC 6-10

ICEC Secretary - General Report 11-19 ICEC Action Plan 2016-2018 ICEC Executive Board ICEC Region Directors ICEC New Director Positions ICEC Region Deputy Directors & Region Assistant Secretaries ICEC Advisory Board ICEC Ambassadors 2016 ICEC Distinguished International Fellow (DIF) Award 2016 ICEC Chair and Regional Award Winners Special Central/South American Awards 2016 ICEC Jan Korevaar Outstanding Paper Award 2016 Kenneth K. Humphreys Outstanding Paper Award ICEC Member Activities / Reports:

The reality of cost engineering worldwide: Gianluca di Castri 20-23

PICQS (Philippines Institute of Chartered Quantity Surveyors) GaMP in UAE Chapter Launched 24 Subcontracting, Novation and ICMS CPD Event 25

AACE International MoA with RICS 26-27

2017 PAQS Conference - Vancouver, Canada 28 2018 ICEC-PAQS Conference - Sydney, Australia 29 AIQS Academy 30

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Kwadwo Osei-AsanteSenior Vice Chair

Julie OwenAdmin Vice Chair

Angelo Do ValleTechnical Vice ChairGianluca di Castri

Admin Vice Chair

Peter Smith ICEC Secretary General

ICEC Executive 2016-2018

Andrej KerinICEC/IPMA Director

Dr Alexia NalewaikResearch DirectorImmediate Past Chair

Sr. TT CheungChair

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It is my honour to be elected as ICEC chairman at the 40th ICEC Board meeting held in Rio de Janeiro in October 2016. I am most grateful for the hard work and hospitality of the host, IBEC, in making the 10th World Congress a success.

It is a big challenge for me to fit in the shoes of Alexia, who has been doing so well as chairman of ICEC for the last two years. I will try my best to bring ICEC forward with the support and joint effort of the executives and regional directors. We have updated the Action Plan for the next two years and this sets the goals for

our work. With the comments that I have received at Brazil, I will streamline the matrix governing structure of ICEC to enhance better communication between the executives and the regional directors.

Apart from certification, ICEC always sees research and sharing of cost data as its important core value. In order to strengthen this core activity, the Board had agreed to create a new Research Director post for this work. It was with our pleasure that Dr Alexia Nalewaik kindly accepted our nomination and the proposal was approved by the Board. If members have any views related to this work, please feel free to raise it with us.

ICEC is geographically grouped under 4 regions : Region 1 – Americas, Region 2 – Europe, Region 3 – Africa and Region 4 – Asia. The Board saw the apparent missing link with the Middle East countries. To this end, the Board unanimously agreed to create an ad-hoc director post with the aim to look into the potential of our development in this part of the world. Nominations will open shortly and the appropriate person will be appointed in due course.

The Board also discussed the need for ICEC to work in closer collaboration with other international organizations, in particular those that we have signed MOUs with. The Board unanimously agreed to create an ad-hoc director post for the co-ordination

Message from the ICEC Chair

Sr. TT Cheung, ICEC Chair

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of ICEC’s activities with IPMA, who is one of our strategic partners. Mr. Andrej Kerin was nominated and approved by the Board to take up this new post.

One of my goals in my chair term is to create a young person chapter for ICEC. I have spent two years building the foundation for its set up and I hope it will be materialized soon.

This year we welcome two new members, CICH (Honduras Civil Engineers Association) and PICQS (Philippines Institute of Certified Quantity Surveyors) to join the ICEC family. The executives are working very hard in getting new members. It is my pleasure to inform that we have been talking to a few potential new members during the Rio congress and I hope that there will be good news soon.

Our China member, China Engineering Cost Association (CECA), has expressed its wish to host an international conference in 2017 in China as our next congress will be held in 2018 and the PAQS 2017 Congress will be held outside the Asian region in Canada. CECA has invited ICEC to co-organize the international conference together with AACE, RICS and FIG. With the current world political and economic climate, I feel that Asia may possibly be the region that investors would most like to invest their money. I therefore think that the conference will provide an opportunity for members to meet in Asia and to understand more about the practices there.

Hong Kong is a gateway to China and is a central point to most Asian countries. I welcome you to visit Hong Kong to experience the dynamic features of this vibrant city. I have a good relationship with CECA and am willing to act as a bridge in helping members to understand more about the practice of this country and connect you with the right contacts.

Lastly, I would like to express my sincere thanks to the outgoing council for their excellent work over the last two years and I am looking forward to working with the new executives over the next two years. I also count on your support in bringing ICEC to a higher level.

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T he year of 2016 has been one of many achievements for ICEC’s Region 1 (Americas). The biggest one of all was certainly

the 10th ICEC World Congress in Rio de Janeiro, from October 7th to 12th. IBEC proudly welcomed its partners from ICEC coming from every corner of the planet to share knowledge, technique, opinions, information, experiences, and also to make important decisions. For the last two years Region 1 has been under the responsibility of Eng. Paulo Dias, President of IBEC, and after unanimous election during this year’s Council Meeting, the mandate has been extended until 2018, which will allow us to continue the activities already in motion, highly important for the development of the science of costs in the Americas, to strengthen he links between the countries of this vast territory towards a greater integration of ICEC in the region.The ICEC Council Meeting happened on October 08th and 09th and preceded the 10th ICEC 2016 World congress – Cost Engineering, Quantity Surveying and Project Management. One of the more significant results was the creation of new guidelines regarding ICEC’s official website (icoste.org) for promoting and improving communication between professionals from all countries: standardizing scientific terminology – idioms and expressions and technical jargons etc – and developing and promoting a broader, more wide-ranging translated media in order to facilitate the interchange of techniques and experiences, once Region 1 has English-, Spanish-, Portuguese- and even French-speaking countries.

The Council Meeting had the partici-pation of 15 nations, 4 of them being from Region 1: United States, Hon-duras, Colombia and Brasil; 5 from Region 2: United Kingdom, Slovenia, Netherlands, Italy and Denmark; 4 from Region 3: South Africa, Nigeria, Kenya and Ghana and finally 2 from Region 4: Hong Kong and Australia. With representatives from IBEC, AIQS, AACEi, ACOSTE, AICE, AICH, ASA-QS, DACE, DPM, GhIS, HKIS, IQSK, NIACE, NIQS, SCI, ZPM, the Meeting assembled a total of 35 people among Chairmen, CEOs, Vice-presidents, Di-rectors, Deputies and Managers. Along with a group of participating audience that number raises up to almost 50 professionals.

New positions were also created: Alexia Nalewaik, past president of ICEC, was elected Research Director – a task aimed at the development and growth of ICEC’s shared knowledge base, focusing efforts in fostering and coordinating collabora-tive studies and information interchange between its member institutes. Other new positions were also created: A ICC--IPMA Collaboration Director and an Ad hoc Director for the Middle East. These positions come to stimulate the creation and search for new entities, eligible for becoming ICEC members – a work very similar to what Eng. Paulo Dias, IBEC President, has been doing in Latin Ame-rica as Region 1 Director, crossing the continent in the pursue of new partners for the Council.

10TH ICEC 2016 WORLD CONGRESS

Board of Directors at the ICEC Council Meeting

The authorities present at the table opening the 10th ICEC World Congress were: ICEC Chair Alexia Nalewaik; IBEC Chair and Region 1 Director Paulo Dias; Secretary-general of ICEC, Peter Smith; ICEC Vice president TT Cheung, IPMA Global Chair Reinhard Wagner; Director of Civil Constructions of the Brazilian Navy Admiral Flávio Macedo; RICS Chair Amanda Clack; President of CREA-RJ Reinaldo Barros; President elected of UPADI (2017-2019) Maria Tereza Zapata; Vice president of IBEC and director of the 10th ICEC World Congress José Chacon de Assis; President of Mútua Paulo Guima-rães and the president of AACE Interna-tional John Livengood. The 10th ICEC World Congress had the participation

C O N G R E S S

The year of 2016 has been one of many accomplishments. Region 1 has perfor-med congresses, ceremonies and semi-nars and signed collaboration agreements between its own members and with the other regions. Great events, such as the Cost Engineer’s Day in Brazil on May 23, preceded by the International Meeting and celebrated in Rio de Janeiro-RJ; the FeiCon/BATIMAT International Cons-truction Fair, from 19 to 21st of October, 2016, in Olinda-PE, and which will happen again in São Paulo on April 4th to 8th, 2017; the Intercon – Construc-tion Exhibition and Congress, held in Joinville-SC.

Region 1 was also represented by IBEC in Spain during the International Cost Engineering Congress in Madrid (March 2nd and 3rd, 2016). Besides, as a result of the partnership from two new techni-cal and scientific agreements signed by IBEC, the institute performed the Cost Engineering, Sustainability and Project Management Seminar in collaboration with SCI – Sociedad Colombiana de In-genieros and SIB – Sociedad de Ingenie-ros de Bolivia. This Seminar happened

W O R K I N R E G I O N 1

in Bogota (Colombia) on April 1st and in Santa Cruz de La Sierra (Bolivia) on April 7th and 8th. There was also the Lecture in the Palacio de Convencio-nes de Habana, the Conventions Palace of Habana, during the Technical and Scientific Construction Conference on April 04-07 by invitation from UNAICC – Unión Nacional de Arquitectos e Ingenieros de la Cons-trucción de Cuba. Another very im-portant collaboration was the alliance

with Colegio de Ingenieros Civiles de Honduras, whose contact with ICEC during the Reunión Intermedia 2015 held by UPADI (Panamerican Union of Engineer Associations) in Roatán – Islas de la Bahía, from July 1st to 3rd, through IBEC, representing Region 1, caused its affiliation to ICEC, which was formalized in this year’s ICEC Meeting and made public during the 10th ICEC World Congress’ Galla Dinner last Oc-tober in Rio de Janeiro.

of 27 nations: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Honduras, Pa-raguay, United States, England, Croatia, Denmark, Italy, Netherlands, Portugal, Slovenia, Turkey, United Kingdom, Ghana, Nigeria, Kenya, South Africa, Australia, China, Hong Kong, Malaysia and New Zealand. As a result of the high demand, the event was visited by around 600 professionals. The paper presentation

sessions had 80 scientific works exposed, raising awareness to various themes in Cost Engineering and Project Manage-ment, defined in the agenda proposed by the Scientific Committee, from a total of 214 abstracts submitted. Such a success was possible only due to the immense dedication of all members of the Council for the advance of ICEC in the region and in the whole planet.

I C E C C O U N C I L M E E T I N G

Sustainability and Project Management Seminar in Colombia

Paulo Dias greeting UNAICC President Mercedes Savigne Paulo Dias visit SIB in Bolivia

These practices are important to proceed with the work done by the IBEC team to reach other countries in Latin America and bring them closer to contribute in the reinforcement of ICEC’s actions. In the Council Meeting, as well as at the exhibitions and presentations at the Con-gress, many global topics were discussed, and yet special attention was dedicated to regional issues during the readings of each region’s biannual report on the first day and also their considerations after the sectional meetings on the second day.

The scientific works presented in the four simultaneous rooms approached impor-tant issues such as ‘Project Audit Process and Project Governance to improve Results’ (winner of Congress’ Best Paper award, by the Brazilian Walter Krause, Director of EMBRATEL-Claro); ‘Inter-national Measurement standards: Space, Cost and Technology’; ‘Comparative Study Budget run on Platform BIM 5D and Conventional Budget based on 2D Autocad design’; among many others.

At the exhibition area the visitors could get in touch with exhibitors from the Brazi-lian Navy, FUNASA-Fundação Nacional de Saúde, AIQS-Australian Institute of Quantity Surveyors, who is organizing the 11th ICEC World Congress of 2018 in Syd-ney-Australia, as well as Itaipu Binacional, IBEC (the Brazilian Institute of Cost engi-

Between the subjects addressed at the discussion panels, the attendants had the chance of observing and participating on debates entitled Public work Bid-dings, with the presence of Paulo Dias (President of IBEC and ICEC’s Region 1 Director), Aldo Dórea (President of AACE Brazil), Diana Bula (President of SCI-Sociedad Colombiana de Ingenieros) and Calvin Speight Jr (RICS’ Consul-tant); also Innovative trends in Project Management, with Reinhard Wagner (President of IPMA Mundial), José Angelo Valle (Technical vice president of ICEC), Raphael Albergarias (President of IPMA Brazil) and TT Cheung (President elected of ICEC) and The Reality of Cost Engineering worldwide, a subject debated in two sections, the first being composed of Alexia Nalewaik (President of ICEC 2014-2016), Julie Owen (Ex-president of AACE International), John Livengood (President of AACEi Region 1) and Paulo Dias (President of IBEC) and the second one with Peter Smith (Secretary-general of ICEC), Alec Ray (Director of ACOS-TE), Alan Muse (RICS) and Gianlucca di Castri (ICEC Region 2 Director).

Amanda Clack, RICS Chair

Showroon

Reinhard Wagner, IPMA Globa Chair

Opening plenary at the Congress

Paulo Roberto Vilela Dias, IBEC Chairman and Region 1 ICEC Director

José Chacon de Assis, Congress Director

The 10th ICEC World Congress was a project by ICEC and IBEC alongside with IPMA (International Project Manage-ment Association), AACEi (Association for the Advancement of Cost Engine-ering – International), UERJ (Univer-sidade Estadual do Rio de Janeiro) and RICS (Royal Institution of Chartered Surveyors). The event was sponsored by ITAIPU BINACIONAL, system SEN-GE-RJ/FISENGE, Caixa Econômica Federal, FUNASA (Fundação Nacional de Saúde), CREA-RJ (Conselho Regional de Engenharia e Agronomia do Rio de Ja-neiro), Systech International, Ministério da Saúde, Mútua (Caixa de Assistência aos Profissionals do CREA), BOCATER (Bocater, Camargo, Costa e Silva Advoga-dos Associados), and it had institutional support from the system CONFEA-CRE-A-Mútua, Rio de Janeiro City hall, ABC (Associação Brasileira de Custos), FEUP (Faculdade de Engenharia da Univer-sidade do Porto), NPPG Poli/UFRJ, Faculdade Presbiteriana Mackenzie Rio, Grupo IDD (Instituto Daher & deLuca), Universidade Santa Úrsula, INPG, PINI, Instututo de Engenharia, Instituto de Engenharia do Paraná, Clube de Enge-nharia, FEBRAE (Federação Brasileira de Engenheiros), Academia Nacional de Engenharia, UPADI (Unión Panameri-cana de Associaciones de Ingenieros), CICH (Colegio de Ingenieros Civiles de Honduras), Global Partners Bayern e. V., USAL (Universidad del Salvador), CPIQ (Consejo Profesional de Ingenie-ría Química), Ordem dos Engenheiros de Cabo Verde, ALAEST (Associação Latino americana de engenharia de Se-gurança), UNAICC (Unión Nacional de Arquitectos y Ingenieros de la Construc-ción de Cuba), Project Builder, AENFER (Associação de engenhiros Ferroviários), Instituto Águas da Terra, SBEF (Socieda-de Brasielira de Engenheiros Florestais) and IBRAENG (Instituto Brasielrio de Auditoria de Engenharia).

neering), CREA-RJ – Conselho Regional de Engenharia e Agronomia do Rio de Janeiro, Mútua-Caixa de Assistência aos Profissio-nais do CREA, Editora PINI, SENGE-RJ/FISENGE – Sindicato dos Engenheiros do Rio de Janeiro and Federação Interestadual de sindicatos de Engenheiros, respectively.

IBEC-Brasil: Rua Sete de Setembro, 4312 andar, sala 1202Rio de Janeiro – RJ – BrasilZip code: 20.050-003 +55 (21) 2508-7919

ChairPaulo Roberto Vilela Dias

Internactional Vice-ChairJosé Chacon de Assis

Executive Vice-ChairJosé Fernando Camargo

Marketing AdviserGuilherme Corrêa

Activities CoordinatorVanessa PerroneInternational SecretaryHeitor LuzEditorPedro Tomaz

TT Cheung receives prize as the new President of ICEC

Paulo Dias elected for Region 1 Director

ICEC’s new board of Directors

Closing celebration with School of samba

Conducting board at the Final Plenary

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ICEC Secretary-General Report

By Dr Peter Smith

Welcome to the December 2016 ICEC International Roundup Newsletter. This newsletter is usually published twice a year in March and October. This edition has been published in December to enable incorporation of the outcomes of the 2016 ICEC World Congress and Council Meeting.I would like to encourage all member associations and their individual members to contribute articles and other relevant information for each newsletter. It provides a good opportunity to promote congresses, seminars, forums, projects and other activities of your association.On behalf of ICEC I would like to thank and congratulate the Brazilian Institute of Cost Engineers (IBEC) for hosting and organising the 10th ICEC World Congress, ICEC Council Meeting and other associated meetings in Rio de Janeiro, Brazil from 8-12 October 2016. The event was organised with a high level of professional expertise and was an outstanding success with a high level of attendance. My report provides details of the main outcomes of the Congress and meetings

ICEC Council Meetings

The 40th Meeting Session of Council was convened on 8-9 October 2016 in Rio de Janeiro, Brazil in conjunction with the 10th ICEC World Congress. ICEC holds its Council meeting every 2 years in conjunction with the ICEC World Congresses which are also held on a biennial basis. This is supplemented by annual regional meetings in each of the 4 ICEC Regions (North/South America, Europe and Near East, Africa and the Asia Pacific). ICEC Chair, Alexia Nalewaik, chaired the meeting which was well attended by ICEC office holders, ICEC member association delegates/representatives and observer delegates from kindred associations.

The Council Meeting Agenda and Agenda Book can be found on the ICEC website at:http://www.icoste.org/members/minutes/#more-48

The Council Meeting minutes and the approved ICEC Budget for 2016-18 will also be posted on the ICEC website shortly.

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2016-18 ICEC ACTION PLANA major outcome of the 2016 Council Meeting was the approval of a 2016-18 Action Plan that will incorporate a number of Committees to work on specific ICEC activities and projects. These comprise both existing committees from the 2014-16 Action Plan and new committees. The Action Plan provides a clear framework for the development and implementation of these various activities and projects.

Each Committee has a designated team leader supported by team members. The following committees have been approved:

1. Develop written policies & procedures for ICEC

2. Establish a baseline Body of Knowledge that includes both cost

engineering and quantity surveying

3. Develop action items for maximizing Memorandums of Understanding and

Cooperative Agreements, with a focus on research

4. Upgrade the ICEC website

5. Maintain and grow ICEC membership

6. Significantly increase marketing of ICEC

7. Develop a strategy for the participation of younger members in ICEC activities

8. Update the online journal

9. Improve the Bi-Annual Roundup Newsletter

10. Integrate research and education programmes into ICEC activities

11. Coalition Member of International Construction Measurement Standard

12. Continue efforts toward development and implementation of United Nations

Strategy

Members of ICEC member associations are welcome to join any of these committees. If you are interested please email the ICEC Secretariat at secretariat@icoste.org and we will put you in touch with the relevant team leader.

The ICEC Executive Officers for 2016-18 were elected at the Council Meeting. The new Executive and Regional Officer Positions are as follows:

ICEC Executive Board: Chair:TT Cheung (Hong Kong)

Senior Vice-Chair:Kwadwo Osei-Asante (Ghana)

Administrative Vice-Chair: Gianluca di Castri (Italy)

Administrative Vice-Char:Julie Owen (USA)

Technical Vice Chair: Professor Angelo do Valle (Brazil)

Secretary-General: Dr Peter Smith (Australia)

Advisory Board Chair: Roger Batten (United Kingdom)

Immediate Past ICEC Chair: Dr Alexia Nalewaik (USA)

Advisory Board Chair: Roger Batten (UK)

ICEC Region Directors Region 1 Paulo Dias (Brazil)

Region 2 Alec Ray (United Kingdom)

Region 3 Kofi Obeng Ayirebi (Ghana)

Region 4 Eugene Seah (Singapore)

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ICEC New Director Positions

Two new ICEC officer positions for 2016-18 were approved at the Council Meeting as follows:

Research Director:Dr Alexia Nalewaik (USA)

Director – ICEC/IPMA Collaboration (Reg 2) Andrej Kerin(Slovenia)

A further Director position was approved for the Middle East region (currently not represented within ICEC). Nominations for this position will be sought within the next month – ICEC member associations are encouraged to put forward their nominations.

ICEC Region Deputy Directors & Region Assistant Secretaries The ICEC Region Directors will consult with their relevant member associations and the ICEC Executive to appoint ICEC regional deputy director and assistant secretary positions. It is anticipated that these positions will be confirmed before the end of the year.

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ICEC Advisory Board

Advisory Board Chair: Roger Batten (ICEC Chair 1996 – 1998)

(Other Advisory Board members to be advised)

ICEC Ambassadors

The following past ICEC chairs and other eminent professionals were appointed as ICEC Ambassadors:

Dr Alexia Nalewaik ICEC Chair 2014-16

Carsten Wredstrøm ICEC Chair 2012-14

Murtala Oladapo ICEC Chair 2010-12

Peter Cox ICEC Chair 2008-10

Ginette Basak ICEC Chair 2006-08

Basie Verster ICEC Chair 2004-06

Dennis Lenard ICEC Chair 2000-02

Allen Hamilton ICEC Chair 1998-2000

Christopher Walker Inaugural ICEC Chair 1976-80

Ong See Lian RICS Global President 2011-12

PAQS Chair 2003-05

RISM President 2003-04

Adesh Jain IPMA Chair 2007-08

ICPMA President 2008-09

PMA-India Hon Nat President

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The ICEC Distinguished International Fellow (DIF) award was introduced in 2002 and represents the highest honour that ICEC can bestow on an individual. It recognizes individuals who have made significant contributions to ICEC and to the association or institute of which they are a member for a period of years. The recipients must be nominated to receive the award by an ICEC member association or institute. They must:

1. Have held a significant volunteer position in both ICEC and a member association or institute;2. Have had significant involvement over a period of several years in both ICEC and a member association or institute; and3. Must have made a significant contribution to the development of the cost management profession.

The criteria is assessed at a very high level to preserve the eminence and prestige of the award. Previous DIF award winners can be found on the ICEC website at:

http://www.icoste.org/awards/icec-distinguished-international-fellow-dif-award/#more-316

The 2016 DIF Award Winners were:

Madhu Pillai (Saudi Arabia/USA) Emanuele Banchi (Italy)Dr Peter Smith (Australia)Professor Angelo Valle (Brazil)

2016 ICEC Award Winners Distinguished International Fellow (DIF) Award

Dr Alexia Nalewaik presenting the 2016 DIF award to Professor Angelo Valle (left) and Dr Peter Smith (right)

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The following ICEC Chair and Regional Awards were also conferred at the Council Meeting:

Chair Awards:

TT Cheung (Hong Kong)

Peter Smith (Australia)

Region 1 Awards:

State Deputy Luis Paulo (Brazil)

State Deputy Paulo Ramos (Brazil)

Region 2 Awards:

Andrej Kerin (Slovenia)

Alec Ray (United Kingdom)

Region 3 Awards:

Prof JJP (Basie) Verster (South Africa)

Prof Rob Pearl (South Africa)

Region 4 Awards:

Julie Cruz (The Philippines)

Keith Yim (Hong Kong)

2016 ICEC Chair and Regional Award

Winners

Dr Alexia Nalewaik presenting the 2016 DIF award to Professor Angelo Valle (left) and Dr Peter Smith (right)

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Special Central/South American Awards

The ICEC Jan Korevaar Outstanding Paper Award recognizes the best paper presented at each ICEC World Congress as evaluated by Congress delegates. The award was created in memory of Jan Korevaar, Executive Director of the Dutch Association of Cost Engineers and Assistant Secretary of ICEC for many years.

The 2016 Jan Korevaar Outstanding Paper Award for the best paper at the 2016 ICEC World Congress was awarded to:

Walter Krausefor his paper titled: “Project Audit Processes & Project Governance to Improve Results “

This award winning paper will be available shortly on the ICEC website at:http://www.icoste.org/category/awards/

Edson Bez da Silva (Edinho Bez)

Maria Teresa Zapata

Maria Teresa Pino

Alejandro Vargas

Alfredo Serpell

José Calix

Diana Espinosa Bula

MNST Eng. Amparo López

The Special ICEC awards were presented to the following people who have made a significant contribution to the development of Cost Engineering in Central/South America:

2016 ICEC Jan Korevaar Outstanding Paper Award

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2016 Kenneth K. Humphreys Outstanding Paper Award

The Kenneth K. Humphreys Outstanding Paper Award was introduced in 2008 in

recognition of Dr. Humphreys’ service as ICEC Secretary-Treasurer from 1976 until

2006. The award is available to students or young practitioners under 36 years

of age and is based on papers prepared on topics related to Cost Engineering,

Quantity Surveying and Project Management. One award can be given in each of

these topic categories if papers are deemed to be of sufficient merit. Papers must

be submitted by ICEC member associations.

The 2016 Kenneth K. Humphreys Outstanding Paper Award Winners were:

Cost Engineering Category

Muhammad Yaseen Bhamjee (South Africa)

Paper Title: Lighting Retrofits - Home Owner Mind-Sets Toward Energy Efficiency

Submitted by: Association of South African Quantity Surveyors (ASAQS)

Project Management Category

Jessica Colbert (USA)

Paper Title: Avoiding CPM Schedule Mismanagement: Maximize Uses

Submitted by: AACE International

The award winning papers will be available shortly on the ICEC website at:

http://www.icoste.org/category/awards/

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By Gianluca di Castri, ICEC Admin Vice Chair

The structure of our profession is quite different in different parts of the world, albeit with a strong common ground. A look inside the list of associations that belong to the International Cost Engineering Council shows three different groups that are “Cost Engineering”, “Project Management” and “Quantity Surveying”, all included under the label of “Project Cost Management”, as proposed in 2012 by Peter Smith and now generally accepted.

My proposal, at that time was to adopt the term “Project Economist”: in reality, this term seems

to be very significant in the variety of the English language used by speakers whose mother tongue is a Latin language, albeit the speakers of English as a mother tongue could understand it with a different meaning.

A lot of differences between the way our profession works in different parts of the world: the first difference we found at the entry level, namely when people is being authorized to act as professional. In Latin countries, the authorization in granted through a vertical, top down procedure, by a higher authority, normally through a mixed committee, academic and professional, while in English speaking countries, the authorization comes through a horizontal procedure, that it’s basically an acceptance by the peers.

A lot of mixed schemes, that are now the majority, take characteristics from both methods.

In the majority of Common Law countries, Cost Engineering and Project

Management have had a separate development, like two fully independent disciplines. The relevant professions are separate, like in England, in the majority of the Commonwealth countries, in the United States of America.

In continental Europe, as well as in other countries belonging to the Civil Law group of countries, the profession of Cost Engineer, Planning Engineer, Project Controller and Project Manager have had a common and sometimes confused development. This can also be understood from terminology: while in Anglo-Saxon countries we have different definitions for Cost Engineering, Project Management, Planning Engineering, Quantity Surveying, in Latin countries the overall term of Ingegneria Economica (Ingenieria Económica, Financiera y de Costos) has been used since the beginning. In 1998, this overall concept has been accepted by the ICEC, as Total Cost Management, whose meaning is corresponding to the

The reality of cost engineering worldwide

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meaning of Ingegneria Economica, as far as the different languages will allow the correspondence.

In the world as a whole, there are several cooperating professions in engineering and construction, such as Project Managers, Project Controllers (the boundary between management and controls is not completely defined in several countries), Cost Engineers (the term cost engineer is difficult to understand in some countries, somewhere they are confused with cost accountants), Cost Managers, Total Cost Managers, Project Cost Managers, Construction Economists, Risk Analysts, Quantity surveyors (whose competencies in Italy and other countries are distributed among other professions), and so on. In reality, all of them are part of the “project profession”, that has not yet been neither defined nor recognized. The very concept of project is changing horizontally and vertically: horizontally, extending thorough the whole life cycle of a project and vertically from project and multi-project to programme, portfolio and, why not, meta-project. As far as project controls are concerned, this reflects in project controls made on behalf of a general contractor, that is where project controls originate from, or on behalf of the owner, albeit commonly called project monitoring, or on behalf of stakeholders and third parties, that is project auditing. A strong joint effort is needed, the project profession as a whole can have a strong voice, while the single professions are neglected. As a term of reference, the lawyers are actually civil, criminal or administrative lawyers, but they can speak with a single voice as lawyers; the medical profession includes for surgeons, neurologists, dentists and so on, but it’s recognized as a whole as medical profession. We are not recognized as a single profession, and this is why we are weak.

Let’s have a look to the other points to be worked out:

• the body of knowledge, that should be compared inside the ICEC, to define the common ground between the member associations, as well as among the other professional federations. This work is slowly in progress since year 2000 and, as it goes on, clearly appears that what we knew since the beginning was true: the various bodies of knowledge have a common ground of about 70% to 80% and probably the different professions are building

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diversified competencies on a common body of knowledge.

• certification, that has to be normalized, creating a common method to compare and accredit the levels among different associations and certifying bodies,

• and project semantics, that could easily be done by completing and updating the multi-lingual glossary prepared by the former French association AFITEP and included in the standards of AFNOR in year 2000, through a proper integration with the glossaries prepared by other associations.

To reach those goals, there is a need of a strict cooperation among our professional associations, respecting the various identities and without trying to encapsulate each other. Unfortunately, after thirty years of globalization, we are shifting again toward localism and particularism, this does not help.

As far as the ICEC is concerned, I believe that we should increase our level of activities in order to become the leading party, or at least one among the leading parties, in the creation and establishment of the “project profession”. For doing so,

• the first step shall be the recognition of the professional market, identifying all the concerned professions and relevant associations;

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this will be mainly a work of documentation, that can be quite completely done by few persons sitting in front of a computer and browsing the web together with their personal knowledge and relationship,

• the second step shall be to create a network of contacts with the associations that we already known together with the further associations identified in the first step, aiming at creating, through a progressive work, a common platform and some common events in order to know each other and agree the common path to follow,

• the third step, in principle, should be to define a common scope and the relevant instruments, that, for instance, could be a second level federation including for ICEC, IPMA, RICS, and others: however, we have not yet the elements to define whether we shall arrive to the third step nor to identify it.

Needless to say, in order to work on this project, in the interest of the member associations as well as of every project professional, the ICEC needs quite a substantial increase in its financial resources, whose terms must be studied and defined.

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The Philippine Institute of Certified Quantity Surveyors (PICQS) launched Guidance and Mentoring Programme (GaMP) in the United Arab Emirates (UAE) on 9 September 2016.Guidance and Mentoring Programme (GaMP) is a six-week training and comprises 12 sessions regarding the written submission (competency statements and case study) of APC* candidates. Each session consists of two CPD hours.

GaMP is open to PICQS Members who, primarily, are graduates of P3T** & PAP1**, Probationer and Associate Members who are APC registered. GaMP is part of the PICQS’ structured programme accredited by International Cost Engineering Council (ICEC).GaMP in the UAE successfully concluded on 21 October 2016 through a simple graduation ceremony. PICQS GaMP has earned a lot of praises and positive feedbacks from the 34 Trainees for the additional knowledge they have gained through six consecutive weeks of training. The Trainees also had expressed their gratitude to the 12 Trainers who unselfishly have shared their knowledge, experience and time which makes the event which makes the event a more successful one.

Again, it’s another milestone for PICQS!

Visit us on www.picqs.org.Note:*APC – Assessment of Professional Competence**P3T – PICQS Think Tank Training***PAP1 – PICQS APC Programme 1

PICQS UAE Chapter Trainees and Trainers during one of the GaMP Training sessions.

GaMP in UAE Chapter Launched

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Oct. 21, 2016, the PICQS UAE Chapter Members posed for a group photo during the last training

PICQS has conducted a CPD event on Subcontracting, Novation and ICMS last 30 July in Manila, Philippines with its own Chair and Founder, Julie Christie M. dela Cruz, as the speaker.

The event was attended by 220 participants, both Members and Non-Members.

The CPD event was held in two parts wherein Julie discussed Subcontracting, Novation and Assignment on the first part. And being an ICMS Trustee and an elected General Secretary, Julie discussed on the second part the importance of the International Construction Measurement Standard (ICMS) especially to the Philippine construction industry.

Currently, the Philippines is using different measurement standards, resulting to significant differences in cost even for typical projects. This results most, if not at all times, the struggle to compare cost data to provide a meaningful benchmark.

The integration of the ICMS into the curriculum in the first QS school in the Philippines and to all PICQS trainings is of a priority in order to ensure that all practicing quantity surveyors adhere to one universal standard.

Subcontracting, Novation and ICMS CPD Event

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We are pleased to announce that on 10th October at the ICEC (International Cost Engineering Congress) conference AACE signed a new Memorandum of Understanding with RICS www.rics.org . This MOU is modeled after other Association MOUs and establishes, like many of our other MOU’s reference to “work product” that should be forthcoming for the two entities, and provides a framework to acknowledge each other’s Intellectual Property, Certifications, and opportunities to collaborate on an increasingly global scale on various industry initiatives. AACE International and RICS had MOU dated July 17th 2001, which was amended November 8th 2001 to include a reciprocity agreement, and dissolved unilaterally in by the RICS, and subsequently announced to AACE membership 26th January 2011. Despite the perceived discord the two organizations have continued to work together in coalitions, collaboration, and in furthering property and construction profession. Most recently in collaboration within industry leadership to provide RICS membership with an “Insight paper on Project Controls in North America”, and international initiatives, e.g. ICMS – an international collaboration to set an International Standard for Construction Measurement, www.icms-coalition.com, in which Martin Darley is Vice-Chair of trustees, and Dr. Phil Larson is contributing member of the Standards Setting Committee. Public consultation of the initial draft of the standard is scheduled in London on 11th November, 2016. Both organizations fully support the Agreement in re-establishing

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Featured in the photo are President Amanda Clack, RICS, and President John Livengood, AACE International.

the core principles of the original MOU, and to formalize an ongoing relationship with the objective of continuing to support each other’s efforts to promote the status of the profession, and to leverage the best practices in terms of the cost engineering, cost management, and project controls.

Martin Darley FRICS CCPVP Education BoardAACE International; 1265 Suncrest Towne Centre DriveMorgantown, WV 26505-1876 USAPhone: +1304.296.8444 www.aacei.orgCell : 832-289-3668e-mail: VPEdBoard@aacei.org

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